Where’s the openness and accountability on the Abitibi expropriation blunder?

Government’s admission that they knew they had accidentally expropriated the mill assets in Grand Falls-Windsor since May 2009 shows once again the total lack of openness and accountability within the Williams administration, says Opposition Leader Yvonne Jones.

Earlier today during proceedings of the House of Assembly, government admitted that they knew they accidentally expropriated the AbitibiBowater mill assets and associated liabilities since May 2009. While they were aware of the significance of this mistake, they did not advise the public until February 2010.

“Hiding such important information from the people of the province only raises more questions as to the significance of this blunder,” said Ms. Jones. “If there was nothing to hide, why wouldn’t government be upfront, admitted that this mistake was made and advise how much it is going to cost the province. We have asked many questions regarding this issue in the House of Assembly, but government refuses to disclose any documentation.

“The potential costs to the people of the province for this mistake could be in the hundreds of millions of dollars. We are currently facing a NAFTA challenge, the costs associated with environmental liabilities, the costs of maintaining the accidentally expropriated mill, and legal costs associated with all of these challenges in the courts. Only time will tell what the final amount will be, however, we haven’t seen the potential for such a costly mistake since the Upper Churchill.”

Jones also said that it is uncertain as to what other assets and liabilities may have also been expropriated through this legislation. “During the estimates committee earlier today, we were advised that government may have accidentally expropriated half of the town of Grand Falls-Windsor. While legally this will have little impact on privately owned land, it shows the lack of due diligence that was actually completed by government in putting this legislation forward.

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